Utility Function Transformations and Preference Invariance

An economist models a consumer's preferences for two different bundles of goods, Bundle X and Bundle Y. The consumer's utility function assigns a value of 30 to Bundle X and a value of 60 to Bundle Y. Based solely on the principle that utility is an ordinal measure, what is the most accurate conclusion that can be drawn?

Evaluating a Business Decision Based on Utility Scores

A consumer reports that their utility for an apple is 10 and their utility for a banana is 20. Based on the ordinal interpretation of utility, this means the consumer desires the banana exactly twice as much as the apple.

An individual's preferences for goods A and B can be represented by the utility function U1 = A * B. A second utility function, U2 = 10 * (A * B) + 5, is also proposed to represent the same individual's preferences. Which of the following statements correctly analyzes the relationship between these two functions from an ordinal utility perspective?

Interpreting Utility Values

A consumer's preferences for three different market baskets, A, B, and C, are represented by a utility function. The function assigns the following values: Utility(A) = 100, Utility(B) = 200, and Utility(C) = 250. Based strictly on the ordinal nature of utility, what is the most accurate interpretation of these values?

Critiquing a Welfare Argument

Evaluating a Policy Argument on Utility

For each statement below regarding a consumer's utility from different bundles of goods, match it to the type of utility interpretation it represents.

Analyzing a Flawed Economic Conclusion